The terms of trade effect of a tariff refers to the fact that a small country can benefit by levying a tariff.
举一反三
- A tariff can increase the welfare of a ''large'' levying country if the favorable terms-of- trade effect more than offsets the unfavorable protective effect and consumption effect.
- An import tariff will cause the terms of trade of the ________ country to ________ and will ________ the country.? importing; improve; harm|importing; improve; benefit|exporting; improve; harm|exporting; improve; benefit
- The optimum tariff is most likely to apply to ( ). A: small tariff imposed by large country B: small tariff imposed by small country C: large tariff imposed by large country D: large tariff imposed by small country
- Which trade policy results in the government levying a "two-tier" tariff on imported goods? A: Tariff quota B: Nominal tariff C: Effective tariff D: Revenue tariff
- If the U.S.(a large country) imposes a tariff on its imported good, this will tend to() A: have no effect on terms of trade. B: improve the terms of trade of all countries. C: improve the terms of trade of the S. D: cause a deterioration of S. terms of trade.